The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers than the agency’s existing products, Guzman said in a phone interview with CNBC.

“An ongoing challenge for small businesses who are trying to go after that contract, perhaps to help us rebuild infrastructure ... or a manufacturing facility that’s trying to expand its orders, is being able to have working capital to deliver against that,” Guzman said.

CNBC reports that costs for the new credit lines will be the prime rate, plus an additional 3 to 6.5 percentage points, bringing the total rate up to as much as 15 percent. The SBA will extend an 85 percent guaranty for lines of credit below $150,000, or a 75 percent guaranty for lines of credit above $150,000, according to the CNBC report.

The SBA’s new working capital lines will have an annual fee and maximum interest rates based on the prime rate plus 3% to 6.5%, which would be roughly 12% to 15% today, according to the agency. They will allow small business owners to either fund specific projects or borrow against their assets.

Loans larger than $150,000 will have a 75% guaranty by the SBA, limiting the losses that lenders face if customers can’t repay their debts. Loans smaller than $150,000 have an 85% guaranty, the agency said.

Work with a Bank that is part of the U.S. Small Business Administration Preferred Lender Program

The U.S. Small Business Administration has issued delegated authority to Integro Bank, an esteemed status within their Preferred Lender Program (PLP).  The PLP status is the most desirable accreditation that a bank can receive for small business lending.

In addition to the PLP designation, Integro Bank also received authority as an SBA Express Lender. These approvals mean that Integro Bank is now recognized amongst banks with proven track records of successfully processing, and servicing SBA-guaranteed loans. Integro Bank will be providing enhanced service and opportunities to the Arizona small business community with the new ability to process smaller-sized loans on an express, expedited basis.  Working with a bank that is an SBA Preferred Lender provides faster turnaround times and streamlines the overall application process.

SBA Lending By the Numbers: Overall Funding and Impact

In FY23, the SBA continued to innovate and retool its programs, while deepening outreach efforts to business owners across the nation, particularly those from underserved communities. FY23 regular business lending and investment programs data of note includes:

  • $27.5 billion in 7(a) loans: Rising above pre-pandemic levels, the SBA backed more than 57,300 7(a) loans worth $27.5 billion to small businesses in FY23. In total, nearly 70% of the SBA’s 7(a) loan volume (more than 39,000 loans) were small-dollar loans of $350,000 or less, with the program originating more loans under $150,000 in FY23 than in FY22, FY21, and FY20 — an overall 45% increase since President Biden took office.
  • $6.4 billion in 504 loans: In FY23, the SBA’s 504 program delivered more than 5,900 fixed-rate loans for equipment, real estate, and debt refinancing worth more than $6.4 billion to small businesses.
  • $87 million in microloan funding: In FY23, $87 million in microloan funding went to more than 5,500 small businesses, with 35% of loans going to Black-owned businesses and 15% of loans going to Latino-owned businesses.
  • $670 million in disaster assistance for small businesses: Throughout the year, the SBA stepped up in moments of crisis to deliver critical support to business owners and communities in need. FY23 saw $670 million in relief delivered to more than 5,200 businesses across America.
  • $8 billion in funding through private debt and equity funds licensed as Small Business Investment Companies (SBICs): In FY23, the SBIC program recorded highs of $8 billion in investments. The SBA’s portfolio of 318 SBIC funds collectively provided financing to more than 1,200 small businesses and startups in FY23, which created or sustained over 130,000 jobs.
  • $7.3 billion in surety bonds: In FY23, the SBA’s Surety Bond Guarantee Program enabled 1,900 small businesses in the construction, services, supply and manufacturing industries to obtain 3,400 private and public contracts. Furthermore, 62% of the SBA’s guarantees went to women, minority, or veteran businesses.
  • $670 million in export-related trade finance: Achieving a second-consecutive year of export finance growth, and despite a rising interest rate environment, the SBA underwrote $365 million in Export Express and International Trade term loans, alongside its Export Working Capital portfolio of $305 million.

Discover Financing Options
SBA 7(a) loans allow a business to borrow up to $5 million to use for such things as business expansion(s), equipment financing, real estate acquisition, working capital, starting a business or to refinance business debt.

SBA 504 loans allow a business to acquire and finance fixed assets such as equipment, machinery and real estate.

Businesses are as unique as their owners and their financing needs vary. It requires a banker with a detailed understanding of the business and its financials to make an appropriate recommendation to help the business use financing to succeed. 

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